Photo credit: www.cnbc.com
Ripple and the U.S. Securities and Exchange Commission (SEC) have finalized a significant agreement, bringing an end to their protracted legal dispute. Following the announcement last week that the SEC would abandon its appeal, Ripple has agreed to withdraw its own cross-appeal, as detailed by Chief Legal Officer Stuart Alderoty on X.
As part of this arrangement, the SEC will keep $50 million from the total $125 million fine that had been previously imposed, with that amount already placed in an escrow account. The remaining $75 million will be returned to Ripple.
Additionally, Alderoty mentioned that the SEC intends to petition the court to lift the existing standard injunction that has been applied in this case.
While the resolution is largely agreed upon, it is still contingent on a formal vote by the commission, completion of necessary legal documents, and adherence to typical court procedures. Once these steps are finalized, the case will be fully resolved.
An SEC spokesperson has opted not to provide comments or confirmations regarding the specifics of the agreement.
This settlement signifies the conclusion of a high-profile legal saga that initiated in December 2020 when the SEC accused Ripple of engaging in an unregistered securities offering through the sales of XRP. This trial has been pivotal in interpreting how U.S. securities regulations apply to digital currencies, particularly during the term of the outgoing SEC Chairman Gary Gensler.
Read more about tech and crypto from CNBC Pro
The resolution of the Ripple case also indicates a shifting paradigm in the regulatory approach towards cryptocurrencies in Washington. Since President Donald Trump began his second term in January, there has been a notable reduction in the SEC’s enforcement actions, including the discontinuation of lawsuits against exchanges like Coinbase and Kraken. Furthermore, there appears to be a potential resolution looming regarding the fraud case involving crypto entrepreneur Justin Sun.
This trend reflects a more accommodating stance from regulators, one that aims to strike a balance between safeguarding investors and fostering innovation within the digital asset sector.
Watch: Trump announces U.S. strategic crypto reserve including bitcoin, solana, XRP and more
Source
www.cnbc.com